MEASURING SME’s PRODUCTIVITY USING SOCIAL MEDIA: ROLE …¢s-PRODU… · Keywords: SMEs...

International Journal of Entrepreneurship Volume 24, Issue 3, 2020

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MEASURING SME’s PRODUCTIVITY USING SOCIAL

MEDIA: ROLE OF ENTREPRENEURSHIP

Qaiser Malik, University of Lahore

Ahmed Muneeb Mehta, University of the Punjab

Rabia Abrar, Bahria University Lahore Campus

Ali Sajid, University of Lahore

Tanveer Ahmad, University of Szeged

ABSTRACT

The purpose of the present study was to explore the effect of Entrepreneurial Self-efficacy

and Entrepreneurial Attitude on the performance of Small Medium enterprises through the usage

of Facebook. It was hypothesized that Facebook usage is likely to mediate the relationship

between Entrepreneurial Self-efficacy and Entrepreneurial Attitude on the performance of Small

Medium Enterprise. A cross-sectional research design was used in this study. A sample of

N=333 admins, social media managers or digital marketing executives, was collected by using a

clustered sampling technique. The data processed by using AMOS software. Structural Equation

Modeling was used to analyze the model. Results showed that Entrepreneurial Self-efficacy &

Entrepreneurial Attitude have a significant association with SME performance through

Facebook usage. In the light of results, it is being recommended that Small and Medium Size

Enterprise must have their Facebook activities to promulgate their performance.

Keywords: SMEs Productivity, The Impact of Social Media, Organizational Development,

Entrepreneurship Growth, Marketing.

INTRODUCTION

Small Medium Enterprises play a vigorous role in any country’s development and these

provide independence to the economy of any developed or developing country. The SME’s

contribute to instigating the country’s economy as these businesses are good absorbent of

unemployment and promotes innovation (Griffin & Ebert, 2006). The SMEs prevailing in the

developing countries contribute a lot towards the GDP and such ratio of these businesses is

higher than Large Scale Enterprises. Small Medium Enterprises play an important role to

produce Gross Domestic Product in most Asian countries and such percentage of SME’s

contribution towards GDP is 75%. The transformation of any country from under-developed to

develop is highly dependent on the performance of the SME Sector. Any country’s confrontation

with the low-level technology, the dearth of entrepreneurial skills, the slow pace of information

provision, production of the low quality of products and services are such hindrances that do not

lead them towards prosperity (Asian Productivity Organization, 2011).

Coad (2007) elucidates that to secure the small business from the failure it is necessary to

enhance their performance. The literature indicated that entrepreneurial traits of entrepreneurs

contribute to the performance of small businesses (Koenig et al., 2013; Ong & Ismail, 2012). The

entrepreneurial traits like self-efficacy and Entrepreneurial attitude have attained enormous

interest from the researchers (Khedhaouri et al., 2015; Torres & Watson, 2013).


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Conceptual Framework

The conceptual framework in this based on the literature review (Figure 1) is given as

under:

FIGURE 1

THEORETICAL FRAMEWORK

Literature Review

The writing examined gives underpins about the relationship of pioneering self-viability

and an innovative demeanor with the development of Small Medium Enterprises. Additionally,

this writing has built up a connection between Facebook use with Entrepreneurial self-adequacy,

Entrepreneurial disposition, and execution of SMEs.

Role of Social Cognitive Theory

The Social Learning Theory by Albert Bandura (1986) builds up that the earth causes the

conduct and the conduct causes nature and the other way around. This Concept is known as the

equal determinism by Bandura. As per this idea of corresponding determinism, the world, just as

the practices, are commonly caused. As per Bandura, the human lead must be clarified regarding

conduct just as psychological and natural determinants. Bandura's Social Cognitive Theory

centers around the idea of support just as perception. This Social Cognitive hypothesis gives

more significance and spotlights on the inner procedures and offers significance to the social-

psychological hypothesis with others. This hypothesis stresses that perception, just as

impersonation, is given over the good examples and these can be guardians, companions,

educationists and they can be TV legends. The main way and necessity for learning are that an

individual watches the other individual or individual, or watches the models practices which are

expected to complete a procedure or direct.

Social Cognitive Theory and Self-Efficacy

Albert Bandura (1982) characterized Self-Efficacy as a "self-judgment of the capacity

which is expected to play out an assignment in a particular area". According to Bandura, as

individuals work and follow up on their sentiments, musings, and practices; consequently the

faith in self-viability gives an incredible effect on the people as they follow up on their conduct


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and emotions (Bandura, 1995). Garcia et al., 1991 characterizes the self-adequacy variable as a

self-evaluation of the capacity to finish an errand and trust in having and achieving those

aptitudes which are expected to play out that specific undertaking. As per the Social Cognitive

Theory, the feeling of self-adequacy of an individual can be affected through four significant

procedures: job demonstrating enactive dominance, social influence and the judgment of one's

mental states which incorporates excitement and tension (Bandura, 1986),

Entrepreneurial Self-Efficacy and Attitude

A few creators have contemplated zones, for example, enterprising vocations and

inclinations in the investigation of the business. They have given an examination and proof of the

expanding job and accentuation on the variable of self-viability. They have likewise

contemplated zones of innovative inclinations, aims, and execution of the customer alongside the

pioneering profession (Boyd &Vozikis, 1994; Chandler & Jansen, 1992; Gartner, 1989; Krueger

&Brazeal, 1994; Scherer et at., 1989). Consequently, Entrepreneurial Self-Efficacy (ESE) is

characterized as the certainty of a person in their capacities to play out the pioneering errands

and jobs effectively (Chen, et al., 1998; De Noble, Jung etal., 1999). Besides, the self-viability of

a business visionary is likewise characterized as the build which can quantify the conviction of

an individual in his abilities to begin and dispatch the pioneering adventure or startup effectively

(McGee, et al., 2009). Self-Efficacy of a business person is a significant and valuable variable as

it is utilized for expanding the feelings of understudies that they can execute the innovative

conduct which is important to create the ideal outcome and result which is the new pursuit.

Entrepreneurial Self-Efficacy and SME’s Performance

Herath& Mahmood (2014) built up a connection between Entrepreneurial Self-Efficacy

and SME's exhibition. The present examination researched the relationship of pioneering self-

viability measurements with the presentation of Small Medium Enterprises. The example size

right now of 350 little scope inns. Auxiliary Equation Model was actualized right now to process

the essential information. The outcomes demonstrated that businesspeople having high useful

abilities perform high and respond as indicated by the conditions, which at last impact the

development of little scope lodgings Ngek (2015) inspected the impact of two interceding factors

which were innovative attitude and receptiveness on the relationship between Self-Efficacy of

business visionary and execution of the private venture. The outcomes showed that the

innovative outlook and receptiveness completely intervened in the connection between the self-

adequacy and execution of independent companies. The connection between the previously

mentioned factors fortifies the comprehension of the connection between the Entrepreneur Self-

Efficacy and Small business execution.

Entrepreneurial Attitude and SME’s Performance

Choe & Loo (2013) investigated the connection between the Performance of Small

Medium Enterprise and the Entrepreneurial Attitude. There is an expanded accentuation on

enterprise explore everywhere throughout the world. As indicated by the Census of

Establishments and Enterprises 2006, it shows that around 518996 or 99.2% of business

foundations in Malaysia go under the class of Small and Medium Enterprises. This investigation

intended to see how the exhibition of Small Medium Enterprises (SMEs) was influenced by the

innovative demeanor in Malaysia. To check the effect of innovative demeanor on the exhibition


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of SMEs, self-directed surveys were appropriated among the respondents and the respondents

were proprietor administrators of the little medium ventures. The information that has been

gathered through the surveys was dissected utilizing the relapse model. The outcomes show that

each of the five elements of an innovative demeanor is emphatically identified with the

presentation of the little medium endeavor.

Entrepreneurial Self-Efficacy and Facebook Usage

Ajjan et al. (2015) contemplated the expansion and ascend in the mindfulness and use of

Social Media Networks that help business enterprises. Their exploration built up another

measurement and factor of "internet based life self-viability". The factor of web-based life self-

viability work in the pioneering plan as an indicator of conduct control. The aftereffect of the

examination found and broke down by halfway least squares. Also, for more exactness and

validness twofold bootstrap strategy was utilized in the examination. Web-based life self-

adequacy gives the special fluctuation of the two examples. As indicated by the outcomes, web-

based life self-adequacy expectation of saw conduct control was above and more than the

commitment of the self-viability of a business person. The commitment of saw conduct control

was not just past the commitment of self-viability of the business visionary; truth be told, it was

likewise more than the entrance to the pioneering assets Stoyanova (2017) considered and

inspected the impact of web-based life on the self-viability of the understudies concerning the

expectations of business visionaries. This investigation inspects the impact of internet-based life

among future alumni concerning their aims as they are confronting the difficulties of the

beginning of down to earth life and quick professional determinations. Quantitative Technique is

utilized for directing this examination, as past investigations on enterprising expectations were

done quantitatively. A very much organized poll was created with scales regarding the factors

which were self-adequacy of a business visionary, enterprising expectations, and the mix of both

with the size of online networking. The objective populace for the poll comprised of the college

understudies of Bulgaria with a little gathering of global understudies as a kind of perspective.

Entrepreneurial attitude and Facebook Usage

Turan& Kara (2018) inspected and dissected the inspiration levels of the business

visionaries, just as the normal advantages and their goals of utilizing web-based life. Right now,

the Social Media Usage conduct of the business visionaries was examined with the assistance of

a quantitative methodology. The information assortment for this examination has been finished

by utilizing surveys and taking individual meetings. The information has been gathered from the

associations which depend on business people. Confirmatory Factor Analysis (CFA) test is

utilized alongside structural equation modeling (SEM). To test the legitimacy of theories, Both

Confirmatory Factor Analysis and Structured Equation Modeling were utilized in the applied

models. Barišić&Vujnović(2018) directed the examination and he has secured and featured the

most helpful part of web-based life. The reason for the investigation was to discover the

significance of utilizing web-based life showcasing for organizations, another motivation behind

this examination was to investigate the preferences just as drawbacks of the online networking

advertising efforts, the third significant reason for this investigation was to discover the best

web-based life stage which can be utilized for running web-based life crusades and which can

profit a business. Infant Sam Samuel's (2015) study centers around the effect and job of online

networking as a central point in advancing business enterprises in the Middle East and Oman.

This investigation was finished by the web-based life in organizations, business people just as


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the overall population. The outcomes which were created after the discoveries from this

investigation delineates that there is an immense use of web-based life in the Middle East

concerning Facebook, Instagram, LinkedIn, and Twitter. This article and study unmistakably

clarify that these nations had over 90% populace who are using long-extend casual

correspondence goals. The writing showed that; enterprising demeanor has a relationship with

Facebook utilization.

(H14): There exists a significant relationship between entrepreneurial attitude and Facebook usage.

Facebook Usage and SME Performance

Adam et al. (2016) led an investigation in Malaysia. They have examined the presence of

social trade, which is the blend of electronic business and the utilization of online life for selling

merchandise and ventures. The utilization of social business has opened up incredible open doors

for the little just as medium undertakings in Malaysia. The use of social trade in Malaysia has

been utilized as an appropriate mechanism for showcasing just as purchasing and selling, thus it

likewise helps the little and medium ventures in producing deals and expanding the productivity

of their organizations as far as income and deals.

Öztamur & Karakadılar (2014) analyzed the role and importance of Social Media

Platforms as a new marketing tool and strategy for the performance of Small and Medium-sized

enterprises. This study focuses on a case study that includes the comparison as well as an

analysis of four new Turkish and American companies. The dimensions include the number of

likes of Facebook Pages and Number of Followers on Twitter, the richness of content on

Facebook and Twitter, interaction with the customer and the use of language on social media.

Moreover, Qualitative methods and techniques have been used to analyze and see how the

companies are engaging with their customers online and how they are using social media as a

strategic tool of social media network marketing. This study has opened up a new dimension of

marketing which is social network marketing (SNM). This study has also identified the issues

and problems in American and Turkish companies. The study highlights that the most common

issue and the problem with Turkish Small Medium Enterprises who are using social media are

related to the formal language usage issue during the communication process with the customer.

Moreover, they create unattractive content that lacks the richness and which lacks attractiveness

and hence they fail in attracting and engaging their social media fans. Another aspect that is

highlighted in the study is that the usage of Twitter is less in American Small Medium

Enterprises as compared to Facebook.

The literature indicated that usage of Facebook has an association with Small Medium

Enterprises performance.

(H15): Usage of Facebook enhances the performance of SMEs in Pakistan.

METHODOLOGY

Sample and Procedure

The cross-sectional research design was used to explore association among

entrepreneurial1 self-efficacy,1entrepreneurial attitude, Facebook usageand performance of

entrepreneurs. The participants in this study belonged to such Small and Medium Enterprises

who had their own Facebook pages and doing business through social media. The particular

participants were Admin, Social media managers and digital marketing executive who was


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managing this business. The researcher considered only such participants who were managing

the Facebook page regularly and they were doing so from at least two years.

The researcher’s greater emphasis was on the reliable data collection procedure. The

questionnaire was filled by the only participants who were managing their business Facebook

page and maintaining their page regularly. The respondents in this study were Admin, Social

media managers and digital marketing executive so that, valid and reliable responses from

concerned persons could be attained. Responses of each questionnaire were keenly observed and

corrections were made by engaging the respondents again. The collected primary data were

further processed by using AMOS software and initially, the reliability and validity of the

questionnaire were estimated. After the reliable results, the data was the further process to

estimate the association between the independent, interdependent and dependent variables.

The Small Medium Enterprises in this study were those, which were prevailing in the

Bahawalpur and tehsils of Bahawalpur. The total population of participants in this study was

2483 and shown in Table 1. The details of the population concerning tehsils are provided as

under:

TABLE 1

POPULATION SIZE

Districts

Name

Population

Size

Districts

Name

Population

Size

Yazman 561 Ahmedpur 812

Bahawalpur

City 429 Khairpur 362

Hasilpur 319 ----- ----

Total 1309 Total 1174

A clustered sampling technique was used in this quantitative study. The calculated

sample size was 333 which was calculated by using a sample size calculator

(https://www.surveysystem.com/sscalc.htm). The sample size which is 333 is provided below in

Table 2 as under: TABLE 2

SAMPLE SIZE

Districts

Name

Population

Size

Districts

Name

Population

Size

Yazman 94 Ahmedpur 108

Bahawalpur

City 76 Khairpur 16

Hasilpur 39 ----- ----

Total 209 Total 124

Sample characteristics were indicated as follows in Table 3:

TABLE 3

SAMPLE CHARACTERISTICS

Attributes Categories Frequency Percent

Age Below 22 Years 23 7

https://www.surveysystem.com/sscalc.htm


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23-27 Years 166 50

28-33 Years 121 36

34-38 Years 8 2

Above 39

Years 15 5

Marital

Status

Un-Married 202 60

Married 126 38

Divorced 5 2

Gender Male 219 65

Female 114 35

Educational

Level

Metric/Diploma 56 17

Bachelor’s 45 13

Master’s 151 45

M.Phil. 76 23

Ph.D. 5 2

Current

Position

Owner 180 54

C.E. O 15 5

Director 40 12

Manager 55 17

Other 43 13

Generation

Level

1st Generation 130 39

2nd

Generation 87 26

3rd

Generation 81 24

4th

Generation 25 8

5th

Generation 10 3

Sale’s

Trend of

Business

Inclined 177 53

Steady 120 36

Declined 36 11

Facebook

Usage

Never 5 2

Rarely 31 10


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Sometimes 61 19

Often 120 35

Always 116 34

Measures

Entrepreneurial Self-Efficacy

The variable Entrepreneurial Self-Efficacy was measured by (Chen et al., 1998) which

consisted of five dimensions and twenty-two items.

Entrepreneurial Attitude

The independent variable Entrepreneurial Attitude was measured by (Robinson et al.,

1991) which was consisted of four dimensions and fifty-eight items.

Facebook Usage.

The interdependent variable Facebook Usage was measured by (Błachnio et al., 2016)

which consisted of twenty-seven items.

SMEs Performance

The dependent variable Small Medium Business Performance scale was measured by

(Wu, 2009) which consisted of five dimensions and twenty items.

RESULTS AND DISCUSSION

The purpose of this study was to investigate the effect of entrepreneurial factors

(Entrepreneurial Self-Efficacy and Entrepreneurial Orientation) on the performance of SMEs and

the use of Facebook. Moreover, this study also investigated the effect of Facebook usage on

SME’s Performance. In this quantitative primary data was collected from the Admin, Social

media managers and digital marketing executive of such businesses who were running their

business by using social media as well. This study is a step to highlight the effect of Facebook

usage for such Small Medium Enterprises who are not using Social for the enhancement of their

business performance.

Structural Equation Model

After the CFA, Structural Equation Model (S.E.M) was implemented to estimate the

relationship between the exogenous and endogenous variables through coefficients for all

hypothesized paths in the structural model. Reisinger & Mavondo (2007) argued: “a good model

fit does not indicate the strong relationships among variables and suggests that researcher

should report not only model fit indices but also the strength of the paths in the model”.


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TABLE 4

ACCEPTANCE/REJECTION OF THE HYPOTHESIS

Hypothesis Name Hypothesis Statement Accepted/

Rejected

(H11)

There exists a significant

relationship between entrepreneurial

self-efficacy and SMEs

Performance.

Accepted

(H12): Entrepreneurial attitude has an

association with SME's performance. Accepted

(H13):

The self-efficacy of entrepreneurs

has a significant relationship with

Facebook usage.

Rejected

(H14):

There exists a significant

relationship between entrepreneurial

attitude and Facebook usage.

Accepted

(H15): The usage of Facebook enhances the

performance of SMEs in Pakistan. Accepted

The Table 5provided below highlights the strength, direction, and significance of

Entrepreneurial Self-Efficacy and SME Performance. The value of Coefficient (0.271) indicates

a positive and strong influence of Entrepreneurial Self-Efficacy on the SME Performance. The

value of coefficient shows, one unit increase in the self-efficacy traits of an entrepreneur the

performance of SME increases 0.271 units. However, the stat threshold states that T value must

be greater than two and P values must be less than 0.05 for the acceptance or rejection of the

hypothesis. So, (t=6.232 > 2 & P=0.000<0.05) indicated that there is a positive significant

association between self-efficacy of Entrepreneur and SME Performance. Based on the results;

the alternative hypothesis (H11): There exists a significant relationship between entrepreneurial

self-efficacy and SMEs Performance is accepted shown in Table 4.

It also shows the significance of Entrepreneurial Attitude and SME Performance. The

value of Coefficient (0.403) indicates a positive and strong influence of Entrepreneurial Attitude

on the SME Performance. The value of coefficient shows, one unit increase in the Attitude traits

of an entrepreneur the performance of SME increases 0.403 units. However, the stat threshold

states that T value must be greater than two and P values must be less than 0.05 for the

acceptance or rejection of the hypothesis. So, (t=8.206 > 2 & P=0.000<0.05) indicated that there

is a positive significant association between the Attitude of Entrepreneur and SME Performance.

Based on the results; the alternative hypothesis:

(H12): Entrepreneurial attitude has an association with the SME's performance is accepted.


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It also shows the significance of Entrepreneurial Self-Efficacy and Facebook Usage. The

value of Coefficient (0.142) indicates positive but very week influence of Entrepreneurial Self-

Efficacy on Facebook Usage. The value of coefficient shows, one unit increase in the Self-

Efficacy of an entrepreneur the usage of Facebook increases 0.142 units. However, the stat

threshold states that T value must be greater than two and P values must be less than 0.05 for the

acceptance or rejection of the hypothesis. So, (t=1.142 < 2 & P=0.156 > 0.05) indicated that,

there is no significant association between Self-Efficacy of Entrepreneur Facebook Usage. Based

on the results; the alternative hypothesis:

(H13): Self-efficacy of entrepreneurs has a significant relationship with Facebook usage is Rejected.

It also shows the significance of Entrepreneurial attitude and Facebook Usage. The value

of Coefficient (0.230) indicates a positive and strong influence of Entrepreneurial attitude on

Facebook Usage. The value of coefficient shows, one unit increase in the attitude of an

entrepreneur the usage of Facebook increases by 0.230 units. However, the stat threshold states

that T value must be greater than two and P values must be less than 0.05 for the acceptance or

rejection of the hypothesis. So, (t=2.032 > 2 & P=0.000 < 0.05) indicated that, there is significant

association between attitude of Entrepreneur Facebook Usage. Based on the results; the

alternative hypothesis:

(H14): There exists a significant relationship between entrepreneurial attitude and Facebook usage is

Rejected.

It also shows the significance of Facebook Usage and SME Performance. The value of

Coefficient (0.189) indicates a positive and strong influence of Facebook Usage on the SME

Performance. The value of coefficient shows, one unit increase in the Facebook Usage the

performance of SME increases 0.189 units. However, the stat threshold states that T value must

be greater than two and P values must be less than 0.05 for the acceptance or rejection of the

hypothesis. So, (t=7.949 > 2 & P=0.000<0.05) indicated that there is a positive significant

association between Facebook Usage and SME Performance. Based on the results; the

alternative hypothesis:

(H15): Usage of Facebook enhances the performance of SMEs in Pakistan is accepted shown in Table 5,

Table 6 and Figure 2.

TABLE 5

ASSOCIATION BETWEEN VARIABLES

c To (Co-

efficient)

“t”

Value P

Entrepreneurial Self-

Efficacy

SME

Performance 0.271 6.232 0

Entrepreneurial

Attitude

SME


Entrepreneurial Self-

Efficacy

Facebook

Usage 0.142 1.142 0.156


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Entrepreneurial

Attitude

Facebook

Usage 0.23 2.032 0.042

Facebook Usage SME


Interaction Summary

TABLE 6

INTERACTION SUMMARY OF VARIABLES

Estimate S.E. C.R. P Label

Facebook

Usage <---

Entrepreneurial

Self Efficacy 0.142 0.1 1.42 0.156 Rejected

Facebook

Usage <---

Entrepreneurial

Attitude 0.23 0.113 2.032 0.042 Accepted

SME

Performance <---

Entrepreneurial

Attitude 0.403 0.049 8.206 *** Accepted

SME

Performance <---

Entrepreneurial

Self Efficacy 0.271 0.043 6.232 *** Accepted

SME

Performance <---

Facebook

Usage 0.189 0.024 7.949 *** Accepted

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the

0.05 level (2-tailed).

FIGURE 2

STRUCTURAL EQUATION MODELING

The graph given in Figure 2 describes that entrepreneurial attitude has a significant

positive impact on Facebook usage and entrepreneurial self-efficacy has no significant impact on

Facebook usage.Similarly, Entrepreneurial attitude has a significant positive impact on SME

performance. Also, entrepreneurial self-efficacy and Facebook usage have a significant positive

impact on SME performance


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Discussion

The results indicated that Entrepreneurial Self-Efficacy has a significant association with

the performance of SME. The entrepreneur has capabilities to manage the enterprise concerning

market share, sales goals, profit goals, and business expansion can contribute to maintaining the

performance of SME. However, there is a need that, Entrepreneur must have creativity,

innovationand a strong sense of mitigating the risk so that, he/she could make wise decisions for

the enterprise. The results of (Hallak et al., 2014) also align with the results of this study that,

Entrepreneurial Self-Efficacy influences positively and significantly theSME performance.The

results of an entrepreneurial attitude with the SME performance indicated that an entrepreneur

tends to provide plenty of time wisely and make calculated decisions for the betterment of the

business. Moreover, an entrepreneur’s control to attain high-level achievements, maintenance of

self-esteem and a tendency to bring innovation in the business procedures leads the business

towards good performance. The indication of the results of this study that, entrepreneurial

orientation has a significant association with the SME performance is also align with the results

of (Harris & Gibson, 2008).The results of Facebook usage for the SME performance indicated

that a business having a factbook page can access their customers at their workplace or homes.

The businesses working physically can access their customer when he used to come to their

stores and it was quite difficult for the customer to visit any store even for a single product or

service. But the businesses having Facebook Page or social media provides online access to the

products of their stores and customer without any hassle can order the product and can receive

that product at his/her doorstep. This ease to the customer has contributed to the increment in the

sales of the store which ultimately increase the performance of SMEs. The results of this study

also match the results of (Ainin et al., 2015).The role of entrepreneurial self-efficacy with the

usage of Facebook has no association. It is true in the sense that, self-efficacy is about

innovation, risk-taking, control of finances and attainment of business goals and these factors are

very few contributors for the usage of Facebook page for a business. Moreover, the results of this

study are aligned with the results of Stoyanova (2017).The role of an Entrepreneurial attitude

towards Facebook usage for an enterprise indicates a positive significant relationship. The

internal attribute like innovation capabilities, Self-Esteem, desires of high achievements and

positive control on making rational decision-making drives the entrepreneur to flourish the

business physically or through social media like Facebook, Instagram. So, the entrepreneur

having an entrepreneurial attitude can enhance the performance of the business by using

Facebook. Moreover, the results of this study are aligned with the results of(Seroka-Stolka &

Tomski, 2014).

Practical Implications

This study has implications in the field of marketing as it guides marketing managers of

small enterprises to focus on social media especially Facebook activities to promulgate the

business performance. In terms of capacity building of marketing staff and improving the

productivity of enterprises, this study also promotes executives of small enterprises to conduct

training programs, seminars, and workshops related to social media handling. SME’s should

make extensive plans as far as the use of social media is concerned as a competitive marketing

tool. Considerable time should be invested by SMEs to produce rich content via social media

accounts so that they can attract the attention of their target customers. The government should

conduct training programs for adults and youngsters for social media handling which can

ultimately contribute to the economy of the country. The owners and their business handlers


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must participate in entrepreneurial seminars and workshops to acute their contribution to the

performance of the SMEs.

Limitations and Future Research Directions

The present study is not without limitations. First, it has only considered Facebook as a

social media engine to measure the productivity of small and medium enterprises. However,

future research can take into account other mediums e.g. YouTube, Instagram, Snapchat, and

WhatsApp, etc., that can be used as marketing tools by small and medium enterprises. Second, in

the future, comparative study can also be conducted to identify which social media engine is a

better marketing tool for small and medium enterprises. Third, another avenue can also be

explored by future studies that how companies should go about the designing of activities

relating to social media for different followers of social media to augment the effectiveness of

reaching targets of marketing.

Fourth, the present has been conducted in a collectivist culture so; the findings of the

study cannot be generalizable on other cultures. Future research may also replicate the present

study in other cultural contexts and different organization settings. Fifth, the present sample size

of the study is small and future studies may also consider the larger sample size. Sixth, a

comprehensive research methodology can be designed by future researchers that offer broader

industry comparison. Finally, exploring the effect of social network marketing efforts on the

market and financial performances might be of use for small and medium enterprises to

determine their investment decisions.

CONCLUSION

In the light of results, it is being concluded that Entrepreneurial self-efficacy and the

Attitude traits of any entrepreneur contributes to enhancing the performance of SMEs in

Pakistan. so, there is a need to instigate such entrepreneurial traits among the Entrepreneurs

entering into the market. Moreover, the usage of Facebook by the enterprises as their business

Facebook page contributes to enhancing the performance of SMEs. It is being deduced that an

updated and active Facebook page of any SME can be a source of new customer market and

sales.

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